Facebook has entered into
an agreement to purchase WhatsApp, the massively popular messaging
client, for $16 billion in cash and stock. A document filed with the SEC
today confirms the huge purchase. As was the case with Instagram, the
company says WhatsApp will continue to operate independently after the
acquisition — separate from Facebook Messenger — but claims the deal
"accelerates Facebook’s ability to bring connectivity and utility to the
world." Facebook is also throwing in an extra $3 billion in restricted
stock units that will go to WhatsApp’s employees; those will vest over a
period of four years after the acquisition is finalized.
In a press release announcing
the monumental buyout, CEO Mark Zuckerberg said, "WhatsApp is on a path
to connect 1 billion people. The services that reach that milestone are
all incredibly valuable." He also shared news of the deal on his personal Facebook page,
saying, "WhatsApp will complement our existing chat and messaging
services to provide new tools for our community." Over 450 million
people use WhatsApp each month, according to statistics in the press
release, with 70 percent of those users active on a given day. WhatsApp
co-founder and CEO Jan Koum will join Facebook’s board of directors as
part of the deal, but his team will remain stationed in Mountain View,
California.
"Doing this will give WhatsApp
the flexibility to grow and expand, while giving me, Brian, and the rest
of our team more time to focus on building a communications service
that’s as fast, affordable and personal as possible," he said in a blog post.
According to Kuam, users don't need to worry about ads "interrupting
your communication." "There would have been no partnership between our
two companies if we had to compromise on the core principles that will
always define our company, our vision and our product," he said.
No comments:
Post a Comment